The Board of Directors of Computer Task Group (NASDAQ:CTG) authorized the Company to repurchase up to $10M of its outstanding shares over the period of next two years.

The Board of Directors also approved a suspension of the cash dividend.

Chairman of CTG’s Board of Directors, Daniel J. Sullivan, commented, “The Board and executive management recently conducted a comprehensive review of the Company’s capital allocation priorities, and subsequently elected to authorize a share repurchase program to take advantage of current market conditions. More specifically, we believe the opportunistic repurchase of CTG shares at the current valuation is a very effective use of the Company’s capital resources. Today’s announcement demonstrates both the Board’s and management’s commitment to maximizing shareholder value, while simultaneously focusing on the execution of our strategic business plans to drive future growth.”

CTG (NASDAQ:CTG), an information technology ("IT") solutions and services company, today announced the launch of a staffing subsidiary in Hyderabad, India. Computer Task Information Technology Services Private Limited will serve as a strategic platform to provide offshore recruiting and sourcing solutions to U.S. customers. The new subsidiary recently secured its first placement in fulfillment of a U.S.-based IT staffing requisition.

CTG Chief Executive Officer Cliff Bleustein commented, "We continue to add new accounts to our U.S. staffing business each quarter, leading us to recognize a need for additional resources as we scale both in the U.S. and offshore. The launch of a new subsidiary in India expands CTG’s existing capabilities to new and existing clients, and we will strategically add further recruiting resources both in the United States and India as our business grows.

“Our Hyderabad-based recruiting team brings deep proven experience in multinational requisitions, immediately augmenting our U.S. recruiting teams with greater reach and alternate cost structures. Additionally, Computer Task Information Technology Services Private Limited will serve as a strategic platform on which we can grow the number of staffing engagements and RFPs that we pursue and service. Consistent with our 2016 business objectives focused on growth and cost reduction, the launch of this fulfillment center in India expands our recruiting capabilities as well as the potential price points of our offering.”

Computer Task Group (CTG-2.2%) will take a $1.1M ($0.04/share) write-off on the net book value of its IT medical management software for severe/chronic diseases, and a $1.2M ($0.05/share) charge related to "the elimination under statutory severance requirements of thirteen employees in Europe."

As a result, Q2 EPS guidance has been cut to $0.01-$0.03 from $0.09-$0.11, and full-year guidance to $0.29-$0.37 from $0.36-$0.44. Revenue guidance is affirmed.

The company also says it's "in the process of identifying" new board members, and is exploring the potential sale of its Buffalo HQ. "By consolidating our Buffalo-based personnel in our remaining facility in Buffalo, we believe we can reduce our operating costs and improve operational effectiveness."